Loveland poverty rate up

New census numbers indicate rise in those struggling, drop in income

Dec. 9, 2008

Written by

DOUGLAS CROWL

Loveland Connection

LOVELAND - The number of Loveland residents living in poverty doubled in recent years as income levels plunged by 10 percent, according to new census data released today.

On average, more than one in every 11 Loveland residents lived below the poverty line between 2005 and 2007, compared to about one in every 16 in the 2000 census, according to results from the American Community Survey conducted by the U.S. Census Bureau. It's the first poverty estimate for Loveland since the 2000 census and is in line with earlier data that showed dramatic poverty increases in that time in Larimer County and Fort Collins.

Jenn and Derrick Barnes have learned how difficult it is to make ends meet while supporting four small children on one modest paycheck.

"I worked so much that I was gone all the time, and it wasn't helping out as much as I hoped. I couldn't make enough to afford day care," Jenn said.

That kept Jenn at home with the children, all between 5 and 11 years old, and the family dependent on Derrick's job as a business analyst, which they said is a "fancy title" with a not-so-fancy salary.

Adding to the financial stress is mounting medical bills, more than $50,000, accumulating from treating their son's severe asthma, Jenn said.

To make it work each month, the children get free lunches from the Food Bank for Larimer County's Kids Cafe program at Vineyard Church, where Jenn also volunteers to help give back.

"It really helps out with meals because things have been so tight," Jenn said.

The Barnes family is not the only one feeling the economic pinch these days in the Sweetheart City.

U.S. Census Bureau data made public today show the median household income in Loveland dipped an inflation-adjusted 10 percent, to $52,281, and the number of people living in poverty increased in virtually every demographic group.

The number of people living in poverty in Loveland increased 100 percent between 2000 and 2007 to 5,699, far outpacing the city's 27 percent overall population increase in that time. Loveland's poverty rate averaged 9.2 percent between 2005 and 2007, up from 5.7 percent in 2000.

The city's poverty rate is still significantly below state and national averages, but poverty is increasing faster in Loveland than in Colorado and the United States.

The Census Bureau also released income and demographic information from the American Community Survey for cities between 20,000 and 65,000 people. It was the first time such detailed estimates were available for cities that size outside of the once-a-decade census.

The numbers are averages of the survey data collected in the cities each year between 2005 and 2007.

Within the Loveland poverty estimates, the two largest increases were in children 17 and younger, at 129 percent, and seniors 65 or older, at 103 percent, according to the data.

The poverty thresholds depend on the number of people in the family. In 2007, for example, a family of four earning $21,027 a year or less was considered in poverty by the Census Bureau.

That's a low threshold, and many people living above that poverty standard still don't make ends meet, said Darcy McClure, human services administrator for the city of Loveland.

"If you are at $22,000, you may not technically be at poverty, but you are a long, long way from being self-sufficient," she said.

All indications on the ground have shown a massive increase of people needing financial help in Loveland, particularly in 2008, she said.

"We know that demands for services, such as food, are way up, at the highest levels that agencies have ever seen," McClure said.

Need for rent and child-care assistance also is up, she said.

The House of Neighborly Service in Loveland, which has food and clothing programs, recently reported averaging 2,200 clients a month, up from the 1,500 clients a month averaged in 2007.

Now, with the census numbers out, there's specific data documenting low-income issues in Loveland, said Gordan Thibedeau, president of United Way of Larimer County.

United Way began facilitating the Pathways Past Poverty community initiative in 2007 to try to reduce poverty in Larimer County. The initiative began when similar data in Fort Collins and Larimer County as a whole showed marked increases in poverty.

However, at the time, there was no hard data for Loveland, Thibedeau said.

"The Pathways initiative is a community effort, and I think these numbers will help to galvanize (the issue) more broadly in the community, as did the specific numbers that came out in Fort Collins," Thibedeau said.

It's difficult to explain what is driving the poverty increase in Loveland.

A Colorado State University study sponsored by the Pathways Past Poverty initiative and released last month gives some insights, McClure said.

"The reason for the increase for childhood poverty (in Fort Collins) is directly related to the number of single-parent households," McClure said.

The study also showed the region saw an increase in lower-paying jobs, such as retail jobs, during the last few years. That followed a drop-off in higher-paying manufacturing and high-tech jobs, she said.

The national economic trends - such as the home foreclosure crisis, job losses and stock market woes - also factor in, McClure said.

"Even though Northern Colorado is doing better than most of the country, we are not insulated from that," she said.